## Patterns and Drivers of Health Spending Efficiency

_IMF Working Papers, March 4, 2022_

## Source details

**Canonical URL:** [Patterns and Drivers of Health Spending Efficiency](https://www.imf.org/en/publications/wp/issues/2022/03/04/patterns-and-drivers-of-health-spending-efficiency-513694)

## Other formats

- [Markdown version](/en/publications/wp/issues/2022/03/04/patterns-and-drivers-of-health-spending-efficiency-513694/index.md)
- [Structured JSON version](/en/publications/wp/issues/2022/03/04/patterns-and-drivers-of-health-spending-efficiency-513694/index.json)
- [Bundle manifest](/en/publications/wp/issues/2022/03/04/patterns-and-drivers-of-health-spending-efficiency-513694/bundle-manifest.json)

## Bibliographic details
- Authors: Mercedes Garcia-Escribano, Pedro Juarros, Tewodaj Mogues
- Published: March 4, 2022
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9798400204388.001

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### Overview
- Demands for ramping up health expenditures are at an all-time high due to responding to the COVID-19 pandemic, closing gaps in achieving the Sustainable Development Goal in health in most emerging and developing countries, and serving an ageing population in advanced economies.
- Limited fiscal space for raising health spending focuses policymakers’ attention on ensuring that resources are used efficiently.
- Central research questions: How sizable are the potential gains from improving health spending efficiency? How has efficiency evolved over the past decade? What can policymakers do to boost it?

### Methodology
- Efficiency estimated across countries using bias-corrected data envelopment analysis.

### Key findings
- The study finds sizable differences in efficiency across countries, in particular among emerging and developing countries compared to advanced economies.
- Examination of the evolution of efficiency reveals that important efficiency gains have been made in the majority of countries.
- The paper quantifies patterns and cross-country variation in health spending efficiency (specific numeric efficiency scores are in the full paper).

### Drivers of efficiency
- The paper explores key drivers and finds associations between greater efficiency and:
  - lower income inequality,
  - less corruption,
  - health interventions oriented at expanding population access to basic health services.

### Policy implications and recommendations
- With limited fiscal space, improving health spending efficiency can free up resources and deliver better health outcomes.
- Policies that reduce income inequality and corruption and that prioritize expanding access to basic health services are associated with greater efficiency and can help amplify the impact of health spending.

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## Content in this bundle

- **Working Paper**
  - [Working Paper (Markdown version)](/-/media/files/publications/wp/2022/english/wpiea2022048-print-pdf.pdf.md){rel="alternate" type="text/markdown"}
  - [Working Paper (PDF)](/-/media/files/publications/wp/2022/english/wpiea2022048-print-pdf.pdf){rel="external" type="application/pdf"}

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_Source: https://www.imf.org/en/publications/wp/issues/2022/03/04/patterns-and-drivers-of-health-spending-efficiency-513694_
